Year End Information & Deadline Reminders

Thank you for your persistence, faith and love as you continue to lead your congregations to reach your community. God is faithful and He continues to offer to us the resources we need to provide Spirit-directed leadership in our own contexts. The challenges and the opportunities before us are great and I continue to believe that we are an especially blessed conference because of the caliber of pastoral leaders under appointment in our network. 

I appreciate your leadership commitment as you work with your team in developing your church’s 2024 budget. I pray that every budget will clearly prioritize our key focus on multiplication in this conference year. As always, please let us know how we may serve you and your people. 

- Supt. Bruce Rhodes

For easy reference we have created a Year-end Check List:

  • Submit your 2024 Commitments to Church Multiplication, SBC, and FMWM by December 15, 2023.
    Link:     2024 Partnership Commitment Form

  • Submit 2024 Salary and Benefit Report by December 31, 2023.
    Link:     2024 Salary/Benefit Report Form

  • Submit 2024 Church Budget to our Office by Jan 31, 2024.

  • Confirm that you have both SMC and FMCUSA listed as "additional insurers" on your Property and Liability Insurance. Email proof of Insurance to Jenny Rivera.

  • File your 2023 Annual State LARA Report with the State of Michigan by October 1st, 2023.

  • Determine your Lay Delegates for 2024 Annual Conference and submit Lay Delegates by February 1, 2024.
    Link: 2024 Delegate Report

  • Submit your church’s 2023 annual financial statements to Jenny Rivera by March 31, 2024.

Helpful Resources:

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The Acts 1:8 church reached Jerusalem, Judea, Samaria, and to the ends of the earth. SMC churches also work to reach beyond their own city, to extend their reach around their region and world. We want to celebrate and partner with you as you do so. Please use the link above to report your financial commitments to ministries beyond your local church.

Please note that your commitments made will be communicated on your behalf to the partners listed (Mission Igniter, Somerset Beach, and FMWM). You will not need to submit multiple forms.

All information needs to be completed in one sitting. For your convenience download a pdf of this form which will enable you to gather the needed information before you begin completing this online form (link below).

The SMC office is here to help facilitate your financial partnership. Please note in this online form, for which commitments you wish to be invoiced.

Commitments to Church Multiplication

It is our collective mission to partner together to ignite a spirit-fueled movement of disciples, leaders, & churches. We encourage every church to participate fully in this mission. Consider partnering in our connectional system by committing funds in three ways for church multiplication:

  • Invest in your own church's multiplication initiative;

  • Giving towards the SMC Church Multiplication Fund;

  • Partnering directly with a new church.

Invest in your Church's Multiplication Initiative

We're asking every church to multiply every 3-5 years. Be intentional about setting aside funds for future multiplication initiatives.

Church Multiplication

Church Multiplication funding goes to support New Church Matching Grants and the oversight of new churches in the Southern Michigan Conference.


Click HERE to set up online giving for Church Multiplication Grants and oversight or request to be invoiced when completing your commitment form.

Partnering Directly with a New Church

We encourage every established church to directly partner financially with a new church plant or request to be involved when making a commitment. Dustin Weber is available should you desire help developing this partnership.

To financially give to a Mission Igniter Church Planter:

  • Set up your recurring gift online: https://www.missionigniter.org/give/

  • Give by mail, designated gifts for a new church or church planter pastor should be made payable to “Mission Igniter” with your designation clearly identified and sent to: Mission Igniter, Southern Michigan Conference, P.O. Box 257, Spring Arbor, MI 49283

Commitments to Somerset Beach Camp

The SMC encourages each local church to consider a financial partnership with our conference camping ministry. Gifts can be given in 3 ways: directly to Somerset Beach campground http://somersetbeach.org/about/give, by including your contribution with your monthly SMC invoiced amount, or by mail to Somerset Beach Camp, PO Box 307, Somerset Center, MI 49282.

Commitments for FMC Global Partnerships/World Missions

Every SMC Church partners with FM global ministries around the world as we endeavor to be Acts 1:8 churches. It is important for every church to update/re-affirm their commitments to their global partners each year. Please consider partnering with both Missionaries (MSAs) and Country Planting and Development Funds (CPDs formerly CSAs).

To complete this process you will need to do the following 4 things:

Step 1. Choose your Partners and Download the Global Impact Report that includes the FMWM 2022 Report and visit FMWM.org for information regarding partnership possibilities. For help in developing your global partnerships, contact Dustin or Megan Weber (dustin.weber@smcfmc.org or megan@jirancollective.org).

Step 2. Report your commitments on the SMC Commitment form: 2024 Partnership Commitment Form

Step 3. Set up your church's giving to be automated online here: https://give.fmcusa.org/
or mail checks payable to:
Free Methodist Church - USA
770 N High School Rd
Indianapolis IN 46214

For help making or setting up a gift contact Debra Hancock a 800.342.5531 or debra.hancock@fmcusa.org.

Step 4. Connect with the missionaries and national leaders you partner with regularly throughout the year.

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For FMCUSA:
For Individual donors, to be included as a 2023 gift, the check must be dated in 2023 and postmarked no later than December 31, 2023. Online gifts must be made no later than December 31, 2023.

For churches, checks for World Missions that qualify as a deduction from income for the Conference Ministry Share must be dated in 2023 and postmarked no later than January 7, 2024, to be counted as 2023 gifts. Online gifts must be made no later than December 31, 2023.

For SMC:
To receive giving credit for donations made to SMC and Mission Igniter Church Plants, the check must be dated in 2023 and postmarked no later than December 31, 2023, and received in the SMC office by January 15, 2024.

For SMC Church Invoices:
December invoices are due January 10. If you have an outstanding obligation, please reach out to Jenny Rivera to make arrangements.

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Salary and Housing

Churches must determine in collaboration with their pastoral staff what their salary and housing compensation will be for 2024. Please report every pastor's salary package to the SMC office using this form (link below) before December 31, 2023. All information needs to be completed in one sitting. For your convenience download a pdf of this form which will enable you to gather the needed information before you begin completing this online form.

Pastor's salaries are broken down into Base Salary + Housing.

In Base Salary, Include:
- Elective Withholdings (403(b) contributions, HSA contributions, elective insurance coverage, etc.) 
- Employment taxes withheld from pastor’s salary (elective federal and state withholding) 

In Base Salary, Do NOT Include:
- Amount of Housing/Parsonage Allowance (defined below)
- FM Pension Payments paid by Church
- Insurance Payments paid by Church on behalf of the pastor (Life, LTD, Health, etc.)
- Church Contributions to the Pastor's HSA Account (paid by the church but NOT withheld from salary)
- Direct Reimbursements and/or Benefit Payments by the Church for:
+ Mileage and Travel
+ Professional Expenses
+ Educational Expenses
+ Medical Expenses *

* Regarding medical expenses, if the pastor designates a portion of the salary to be withheld as a tax-free reimbursement for medical, dental, or other expenses (such as extra payments to an HSA / Section 125 Cafeteria Plan), this portion of the salary should be reported as part of the pastor's base salary. The reimbursements / payments are actually being made from the pastor's salary and not the church budget - they function as a tax shelter for the pastor.

Clergy Housing
There are three potential Housing/Parsonage Allowance options for pastors. The benefits should be reported according to the option that best applies.
1. Pastor owns/rents home and pays all expenses
2. Pastor lives in church provided housing and CHURCH PAYS some/all utilities
3. Pastor lives in church provided housing and PASTOR PAYS all utilities

Note that while while non-clergy staff are not eligible for the tax benefits of a housing allowance, some do still receive housing compensation, typically in the form of a parsonage. You may be obligated to report this as compensation.

Please consult the ECFA, "Ministers' Tax & Financial Guide” for further assistance.

Pension Contribution
The FM Pension program is administered by the HR department at the FMC-USA World Ministry Center. Please note the following criteria for eligibility: 

  • All ordained, appointed pastors (Elders) who receive compensation are required to be enrolled in the FMC-USA Pension Program.

  • CMCs who are appointed as a Lead/Solo pastor are also required to be enrolled in the Pension plan.

  • CMCs who are appointed as a “Staff Pastor” or “Associate Pastor” are eligible, but not required to be on the plan.

Questions regarding the pension plans and accounts should be directed to the FMC-USA HR department (800.342.5531).

For information regarding the Defined Benefit Plan visit: https://hr.fmcusa.org/defined-benefit/
The pension benefit rate is 13.5% of Salary plus Housing for eligible personnel.
Click HERE for Resource on Pastor's Compensation Reporting for Pension

If there has been adjusted salaries of staff members in the pension program in 2023 and you have not already reported this to the SMC office, please notify Jenny Rivera @ Jenny.Rivera@smcfmc.org.

In October 2022, the Board of Administration approved a significant change to the pension plan that will allow participants to draw their pension benefits as early as age 62 and remain actively working for the Free Methodist Church. For more information, please refer to this letter from the pension office. 

Health Benefits
Conference Policy expects that the health needs of our pastors are cared for. Direct questions to Keith Mueller at Lutheran Benefits, 1-800-575-2777. SMC Health Insurance Policy

Every church must acknowledge that they are aware of the SMC Health Insurance Policy and are operating in alignment with it. This acknowledgment is done through the Salary Report form.

Health Savings Account (HSA)
The minimum recommended contribution from your church is the same as 2022:
$1250 for a single participant
$2500 for a family (2 or more)

Please note that if your church allows employees to voluntarily withhold additional funds from salary to be contributed to the HSA you must have a "Section 125 Cafeteria Plan" set up. Please contact Keith Mueller to set this up at Lutheran Benefits, 1-800-575-2777.

Life, Long Term Disability (LTD), Supplemental Insurance
All full-time, appointed pastors (any status) are required to participate in the SMC Group Life Insurance plan and Long Term Disability Insurance plan. Employees may also elect to purchase additional Supplemental Life Insurance. Contact Bonnie Philson at Bonnie.Philson@smcfmc.org in the Southern Michigan Conference Office for help in completing the enrollment forms or with questions.

The following are current rates/coverage for life insurance:

  • Basic Life $7.05 per month for $15,000 coverage

    • At age 65, cost is $4.58 for $9,750 coverage

    • At age 70, cost is $3.50 for $7,500 coverage

    • At age 75, cost is $2.47 for $5,250 coverage

  • LTD: .0039 x monthly compensation (use the same compensation amount as with pension) 

Supplemental/Voluntary Life Insurance
Only paid by church on special arrangement. (Based on age with Regular 5-year increases)

DELEGATE ELECTION

As has been our practice for several years, lay Delegates from each church must be chosen/elected by Feb 1, 2024 and reported to the SMC office using this form. This form serves as your lay delegate’s credentials (per Book of Discipline ¶ 5010 C). This form should be completed by the Lead Pastor, Church Board Chair, or the Secretary of the Society/Board. If your typical practice is to elect delegates at a society meeting, it is not necessary for societies to meet in person. Elections may be done by mail, electronically, or with a Sunday morning voting station. 

Please use the following guidelines from the 2019 Book of Discipline (¶ 5010 B) to determine the number of lay delegates the church is eligible for:

  • Your church is eligible to elect lay delegates if your church has Society status. If you are a Church Plant or Fellowship, you may elect/appoint an honorary delegate (voice without vote).

The number of delegates you may elect are calculated as follows:

  • 1 delegate for the Society

  • + 1 additional delegate for each additional SMC appointed AND ordained elder, other than the Lead Pastor

  • Additional delegates may be elected based on adult membership over 100 (note members NOT attenders)

    • + 1 delegate for Societies with Membership of 101-300

    • + 1 delegate for each additional 200 adult members (not attendees) over 100; for example:

      • 300-500 members equals +1 additional delegate

      • 501-700 equals +1 delegate

In addition to the primary lay delegate(s), please elect AT LEAST one reserve lay delegate.

*Please note that the number of members that you report in your 2023 Denominational Year End Report (which you will submit for the FMC USA Annual Report 2024) should be the number used to calculate the number of delegates you are eligible to elect for 2024 Annual Conference.